Woodside Energy has defended its chairman, Richard Goyder, amid a campaign by activist shareholders against his re-election. 

The company has described Goyder as “a highly capable and effective leader”, following criticisms from the Australasian Centre for Corporate Responsibility (ACCR). 

The ACCR had labelled Goyder as “persistently unresponsive” towards addressing environmental risks, a claim strongly refuted by Woodside's board.

This defence comes alongside increased climate activism targeting major ASX-listed resources companies, with Woodside being a primary focus over the past year. 

HESTA, a major superannuation fund, has confirmed its intention to propose board candidates, emphasising the need for stronger climate action despite owning less than 1 per cent of the company. 

This move reflects broader pressures from unions and members to improve the company's environmental stewardship.

Woodside has outlined its climate transition action plan, slated for discussion at the upcoming annual shareholder meeting. 

The plan aims to address shareholder feedback and many believe it represents a significant step forward from previous strategies. 

This follows a previous shareholder meeting in which nearly half of the votes opposed Woodside's climate strategy, signalling growing investor concerns.

Further complicating matters, Market Forces, another activist group, has indicated plans to leverage Goyder's re-election as a means to push for more aggressive carbon emission reduction strategies. 

The developments coincide with Goyder's impending departure from Qantas's chairmanship, a position he will pass to John Mullen in October.

Woodside's climate strategy includes ambitious targets for reducing direct and Scope 3 emissions, which are generated by the consumption of their products by customers. 

The company has committed to a 15 per cent reduction in net direct emissions by 2025 and 30 per cent by 2030, with a 12.5 per cent reduction already achieved by 2023. 

For the first time, Woodside's strategy also sets a target for Scope 3 emissions, aiming for significant reductions through clean energy projects by 2030.

However, the energy sector faces growing skepticism regarding the feasibility of meeting climate targets. 

Recent developments, such as Shell's adjustment of its emission reduction targets and S&P Global Ratings' warnings about the hydrogen market's sluggish development, highlight the ongoing challenges. 

Woodside's CEO, Meg O’Neill, has noted the reluctance of LNG and hydrogen customers to pay a premium for green fuels, which adds uncertainty to the company's 2030 emissions goal.

The path forward for Woodside may require substantial investments in carbon capture and non-hydrocarbon power generation technologies, raising questions about the company's ability to meet long-term reduction goals without substantial customer support for new energy products.